The impact of effectuation on the introduction of innovative products

Abstract

This article relates to the general field of strategic management and leadership to which the concept of entrepreneurship belongs. The purpose of this article is to present the results of the research conducted for the analysis of the state of the art in current entrepreneurial actions with focus on effectuation and its influence on the introduction of new innovative products in large companies. Focusing on the entrepreneurial decisions the study was designed to analyze how large companies that generally work in processes, and take only informed decisions, could somehow act more entrepreneurial. Testing of the identified hypothesis was performed by using qualitative research in the interviews. Twelve product managers and development engineers active in a large company and having relevant knowledge and experience formed the sample. The study was able to identify some areas in which entrepreneurial action showed positive outcomes and managed to give a particular insight into modern development processes. The following identified hypothesis was confirmed: an effectuation decision making strategy has increased value for a newly created highly innovative opportunity at the beginning of the product life-cycle management process. The research has identified practical implications for a large company when effectuation strategies are used by product managers in the introduction of innovative products. This is of interest both for product managers when it comes to new opportunities and executive managers that are able to actually practice the innovation and entrepreneurship as defined company values.